Prepare the Debtors Journal given the following information: Profit mark-up is 60% on cost. March 1: Sold merchandise to M Minnie for R 3 800. March 8: Sold goods to L Lulu with a cost price of R 1 60

May 18, 2026Accounting

ScanSolve AI Answer

May 18, 2026

Answer

Cost Price $\times$ 1.6.

Here are the required journals:

1.1.1 Debtors Journal (DJ)

The Debtors Journal records all credit sales. The profit mark-up is 60% on cost, meaning Selling Price = Cost Price $\times$ 1.6.

Step 1: Calculate sales and cost of sales for credit transactions.

March 1: Sold merchandise to M Minnie for R 3 800.
- Sales: $\text{R } 3800$
- Cost of Sales: $\frac{R 3800}{1.6} = R 2375$
March 8: Sold goods to L Lulu with a cost price of R 1 600.
- Cost of Sales: $\text{R } 1600$
- Sales: $\text{R } 1600 \times 1.6 = R 2560$

Step 2: Prepare the Debtors Journal.

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1.1.1 Debtors Journal (DJ) The Debtors Journal records all credit sales. The profit mark-up is 60% on cost, meaning Selling Price = Cost Price × 1.6.

Asked on May 18, 2026Accounting

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ScanSolve AI AnswerAnswered on May 18, 2026

Here are the required journals: 1.1.1 Debtors Journal (DJ) The Debtors Journal records all credit sales. The profit mark-up is 60% on cost, meaning Selling Price = Cost Price × 1.6. Step 1: Calculate sales and cost of sales for credit transactions. March 1: Sold merchandise to M Minnie for R 3 800. Sales: R 3800 Cost of Sales: R 38001.6 = R 2375 March 8: Sold goods to L Lulu with a cost price of R 1 600. Cost of Sales: R 1600 Sales: R 1600 × 1.6 = R 2560 Step 2: Prepare the Debtors Journal. |l|l|l|l|r|r| Date &